FIPB.. $10.60 Earnings..
First Internet Bancorp Announces Record Year-End Earnings
INDIANAPOLIS--(BUSINESS WIRE)-- First Internet Bancorp ("First IB"), parent company of First Internet Bank of Indiana ("Bank"), today announced record net income of $4,954,660, or $2.61 per share, for the year ended December 31, 2010. This compares favorably to the net loss of $2,118,028, or $1.12 per share, reported for the year ended December 31, 2009.
"Last year was our best year ever in terms of earnings, net interest income, and non-interest income," said David B. Becker, Chairman and CEO of First Internet Bancorp. "Through our asset/liability management initiatives, our mortgage loan origination activity, and our loan collection and recovery efforts, we increased value for our shareholders in 2010." As of December 31, 2010, First IB's net book value was $25.68 per share, up $2.05 compared to December 31, 2009.
For the year ending December 31, 2010, the net interest margin for the Bank equaled 3.29%, compared to 2.73% reported for 2009. The improvement in the net interest margin resulted in an increase of $762,989 (5.5%) in net interest income over the prior year. "We managed our balance sheet strategically while rates were low in 2010," Mr. Becker noted. "We lengthened our liabilities and shortened assets in order to protect our net interest margin should interest rates rise in the year ahead."
Non-interest income of $4,346,344 in 2010 increased $1,143,013 (35.7%), from $3,203,331 in 2009, and was driven by an increase of $1,271,295 in gains on mortgage loans sold into the secondary market.
Provision for loan losses in 2010 equaled $927,272, compared to $11,563,786 in 2009. The substantial reversal of one particular commercial credit charge, improvement in the level of loan charge-offs overall, and changes in the Bank's loan mix and outstanding balances contributed to the positive variance.
Earlier in 2010, management was able to obtain new collateral from a single commercial borrower. Based upon the new collateral, First IB made a first quarter reversal of $2,365,573 (78.9%) of the original $3,000,000 charge taken in the last quarter of 2009.
Net charge-offs of $4,178,669 in 2010 improved $1,904,310 (31.3%) from 2009 levels of $6,082,979.
Reserve balances represent 2.20% of total loans as of December 31, 2010, versus 3.13% at December 31, 2009. Total loans as of December 31, 2010, were $311,398,862 compared to $322,704,509 at December 31, 2009. "Throughout the year, we actively addressed existing loan portfolio delinquencies and charged-off questionable credit balances when appropriate," stated Mr. Becker. "We believe the remaining loan loss reserve is sufficient to address existing credit risks."
Non-interest expense, comprised primarily of compensation, data processing costs, occupancy and other operating expenses, increased $1,028,666 (11%) from $9,341,343 in 2009 to $10,370,009 in 2010.
The improved financial performance during 2010 allowed First IB to increase its tier one leverage ratio from 7.72% as of December 31, 2009, to 9.41% as of December 31, 2010. First IB remained well capitalized under all risk-based capital guidelines issued by the Board of Governors of the Federal Reserve System (FRB).
Selected Balance Sheet Information
December 31
2009 2010
Cash Equivalents 30,016,044 32,416,623
Investment Securities 133,583,840 136,936,295
Loans, net of Reserve 312,607,696 304,553,446
Bank owned life insurance 7,574,415 7,868,699
Goodwill 4,687,349 4,687,349
Other Assets 16,145,978 17,452,876
Total Assets 504,615,322 503,915,288
Deposits 411,627,338 422,702,556
FHLB Advances 47,000,000 30,454,832
Other Liabilities 1,224,136 1,860,255
Shareholder's Equity 44,763,848 48,897,645
Total Liabilities & Equity 504,615,322 503,915,288
Selected Income Statement Information
Year Ended December 31
2009 2010
Net Interest Income 13,748,059 14,511,048
Non-Interest Income 3,203,331 4,346,344
Other-than-temporary Impairment Loss (300,000) (909,563)
Provision for Loan and Lease Losses (11,563,786) (927,272)
Non-Interest Expense (9,341,343) (10,370,009)
Net Income (Loss) Before Taxes (4,253,739) 6,650,548
Tax Benefit (Provision) 2,135,711 (1,695,888)
Net Income (Loss) (2,118,028) 4,954,660
Income (Loss) per share:
Basic (1.12) 2.61
Diluted (1.12) 2.61
Weighted average of shares outstanding:
Basic 1,892,082 1,898,919
Diluted 1,892,082 1,898,919
About First Internet Bancorp
First Internet Bancorp (OTC Bulletin Board: FIBP), the parent company of First Internet Bank of Indiana, is privately capitalized with over 250 private and corporate investors. The Bancorp became effective March 21, 2006.
About First Internet Bank
With over $500 million in assets, First Internet Bank of Indiana (First IB) is the first state-chartered, FDIC-insured institution to operate solely via the Internet and has customers in all 50 states. Deposit services include checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs and IRAs. First IB also offers consumer loans, conforming mortgages, jumbo mortgages, home equity loans and lines of credit, and commercial loans. First IB is a wholly owned subsidiary of First Internet Bancorp.
CONTACT: First Internet Bancorp
Laurinda Swank, 317-532-7909
Source: First Internet Bancorp
